Cotton Prices Rise on Monday with Strong Export Sales
Market Gains Amidst Support from External Factors
Cotton prices saw increases of 21 to 25 points this Monday morning. Last Friday, futures closed 4 to 14 points higher, buoyed by favorable conditions in external markets. The U.S. dollar index fell by 83 points, while crude oil prices increased by $0.78 per barrel.
Export Sales Show Significant Boost
Data on export sales revealed that 279,056 running bales of upland cotton were sold for delivery in 2024/25 during the week ending December 19. This marks a four-week high, representing a 43.18% increase from the previous week. Notably, importers from Turkey purchased 108,700 bales, while those in Vietnam bought 104,500 bales. Additionally, sales for the 2025/26 crop year reached 29,480 bales. Shipments also surged, reaching a three-week high of 140,484 bales, which is 9.26% above the prior week. China remained the largest destination with 33,200 bales, followed closely by Pakistan, which received 31,900 bales.
Market Indicators and Stock Data
On December 26, The Seam recorded online sales of 3,126 bales at an average price of 59.37 cents per pound. The Intercontinental Exchange (ICE) reported that certified cotton stocks remained unchanged at 20,113 bales as of Thursday. The Cotlook A Index increased by 130 points to reach 79.60 cents per pound as of December 24. Conversely, the USDA Adjusted World Price (AWP) was lowered by 54 points last week, settling at 54.55 cents per pound, valid through this Thursday.
Cotton Future Prices Update
For the March 2025 cotton contract, the close was at 68.89, reflecting an increase of 14 points, with current trading up by 25 points. The May 2025 contract closed at 69.96, up 10 points, and is now 24 points higher. Lastly, the July 2025 cotton contract ended at 70.99, up 11 points, and is currently up 21 points.
On the date of publication, Austin Schroeder did not hold any positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data presented are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
